Mergers lack logic, will further destabilise eco: Bank unions

Mumbai: Bank unions Friday opposed the mega merger of 10 state-run banks into four saying the move is bereft of logic and lacks any rationale.

"The proposals which the government has moved are unmindful since it has no logic or rationale. Neither, it is the case that a weak bank is merged with a strong one nor geographically compatible banks are being merged," All-India Bank Employees Association said in a statement.

The unions further said United Bank, headquartered in Kolkata is being merged with the Delhi-based Punjab National Bank, while Syndicate Bank is being merged with Canara having network in same geographical areas.

The unions said the government has come out with merger proposals at a time when the economy is passing through a rough weather-as the announcements came an hour before the government reported that the economy slowed to the lowest level in 25 quarters in the April-June period clipping at a low 5 percent.

"At this point in time, when stability is the need of the hour, the government itself is attempting to destabilise the finance and economy," the statement said.

The union said in the process of merger, SBI had closed over 1,000 branches and in case of Bank of Baroda, more than 500 branches are being closed.

"On one side the government wants to implement Jan Dhan, but how it is possible to implement the same by closing down the branches?" they wondered and announced that they will observe black day on Saturday and threatened to launch more protests go ahead.